Digest for 12 August, 2025
Lok Sabha Passes New Income Tax Bill to Replace 1961 Act
The Lok Sabha has passed the Income Tax (No. 2) Bill, 2025, which will replace the six-decade-old Income Tax Act of 1961. The new legislation, which incorporates most recommendations from a select committee, aims to simplify tax laws, ease compliance for taxpayers, and modernise the legal framework. Key changes include streamlining sections and eliminating the separate concepts of "previous year" and "assessment year." However, it also grants authorities new powers to access taxpayers' digital accounts during searches.
US and China Extend Tariff Truce for 90 Days
The United States and China have extended their trade truce for another 90 days, delaying a significant tariff escalation. The previous deadline was set to expire Tuesday, which could have triggered duties of up to 145% on Chinese goods and 125% on US goods. The extension, announced by US President Donald Trump, maintains the current 30% US tariff and 10% Chinese tariff. The move provides more time for negotiations on longstanding trade disputes and offers stability for businesses and global markets.
Supreme Court Orders All Stray Dogs Removed from Delhi-NCR Streets
Citing an "extremely grim" situation from stray dog bites and rabies cases, the Supreme Court has ordered authorities in Delhi, Noida, and Gurugram to remove all stray dogs from public areas. The bench directed that the dogs be permanently relocated to shelters, which must be equipped with CCTV cameras and sufficient staff for care, sterilisation, and immunisation. The court warned of strict action, including contempt proceedings, against any individuals or organisations obstructing the removal process, emphasizing public safety over sentiment.
China to Build Strategic Xinjiang-Tibet Railway Near Indian Border
China is set to begin construction on an ambitious railway connecting Xinjiang with Tibet, with parts of the route running near the Line of Actual Control (LAC) with India. A state-owned company has been established with 95 billion yuan ($13.2 billion) in capital to build the link between Hotan and Lhasa. The project is part of a plan to create a 5,000-km plateau rail network by 2035, significantly enhancing China's infrastructure and logistical capabilities in the strategically sensitive border region.
Australia Announces It Will Recognize Palestinian Statehood
Australian Prime Minister Anthony Albanese announced that his country will formally recognize a Palestinian state, a decision to be formalized at the UN General Assembly in September. The move, which follows similar signals from France, Britain, and Canada, is predicated on commitments from the Palestinian Authority, including no role for Hamas and demilitarization. Albanese described the decision as a practical contribution to a two-state solution and an end to the "humanitarian catastrophe" and cycle of violence in Gaza.